EXECUTIVE
SUMMARY
The
fast food restaurant is proposed to be established at a location that has a
continuous stream of traffic, convenient parking, and is in proximity to other
businesses, preferably near densely populated middle income areas or flat
complexes. Major cities like Karachi, Hyderabad, Sukkur, Larkana, Multan,
Lahore, Gujranwala, Faisalabad, Sialkot, Gujrat, Rawalpindi, Peshawar, Hub and
Quetta etc. are suitable to house the project.
Common menu items at the proposed fast food outlet include sandwiches,
burgers, fried chicken, Chinese soups, Chinese rice variants, French fries,
salad and cold drinks. The fast food
restaurant will have an installed capacity to serve 335 clients per day;
however, the restaurant would initially start business with 140-150 clients. 10
personnel would be required to manage the operations of fast food restaurant.
Total Cost Estimates are Rs. 2.20 million.
The
most critical considerations or factors for success of the project are:
1.
Choosing the right location for the fast food outlet
2.
Creating the right menu and menu pricing
3.
Hiring experienced cooks and staff
4.
Knowing the competition.
BRIEF
DESCRIPTION OF PROJECT AND PRODUCT
Fast
food is a name given to food which is prepared with preheated or pre- cooked
ingredients and served to customers in a packaged form for take-away or dine
in. Many fast-food restaurants operate chains or franchise operations, where
standardized foodstuff is shipped to each restaurant from a central location.
There are also simpler fast-food outlets, such as stands or kiosks, which may
or may not provide seating arrangements for customers. As capital requirements
to start a fast-food restaurant are relatively low, individually-owned
fast-food restaurants have become popular and common throughout Pakistan.
Market growth largely depends on demographics, urbanization, changing lifestyle
patterns and demand for convenience. Thus all these variables determine the
potential of fast food business.
•
Technology: The proposed setup with used fast food cooking machinery including
fryers, grilling machine, soup containers and pre-processing equipment would
serve popular fast food and Chinese cuisine.
•
Location: The business is envisaged to be established as a fast food take-
away/outlet, with limited seating capacity on rented premises/shop of around
500 sqft., near a densely populated area suitable for fast food. Major cities
like Karachi, Hyderabad, Sukkur, Larkana, Multan, Lahore, Gujranwala,
Faisalabad, Sialkot, Gujrat, Rawalpindi, Islamabad, Peshawar, Hub or Quetta
etc. are suitable to establish the business.
•
Product: Four popular fast food items, including fried chicken, burgers,
sandwiches, Chinese fried rice and soups, have been selected to be served
separately or as combo meals through the outlet. The restaurant is proposed to
have an installed capacity of serving 335 customer per day but is estimated to
start with 140-150 customers per day.
•
Target Market: The middle income segment of major cities such as Karachi,
Hyderabad, Sukkur, Larkana, Multan, Lahore, Gujranwala, Faisalabad, Sialkot,
Gujrat, Rawalpindi, Islamabad, Peshawar, Hub or Quetta etc. is the target
market for the business.
•
Employment Generation: The proposed project will provide direct employment to
10 people.
CRITICAL
FACTORS
Whether
an entrepreneur is opening a one-of-a-kind no-frills fast food restaurant or
trying to expand an existing fast food outlet into a multi-unit chain, there
are winning principles that can improve the chances of success. Some key
success factors are as follows:
•
Selecting the right location and layout
•
Hiring well experienced staff especially cooks and servers
•
Quality & Hygiene
•
Creating the right menu
•
Menu pricing
•
Operational food quality consistency
•
Knowing the competition
INSTALLED
AND OPERATIONAL CAPACITIES
In
the fast food restaurant business, the installed capacities are mainly
dependant on the location and layout of the outlet, service style, food concept
and the target market. The proposed fast food business is envisaged to be
established as a take-away outlet with limited seating capacity around it. The restaurant is expected to serve around
335 customers in a day. At start up, the operational capacities are estimated
to be around 140-150 clients. Once the fast food gains popularity and
acceptance, sales are expected to increase with the same installed
capacity.
GEOGRAPHICAL
POTENTIAL FOR INVESTMENT
In
recent years, much of the expansion in the fast food business has been in the
form of "satellite" outlets. These tend to be smaller in size, with
little or no seating capacity, and are often in nontraditional locations, such
as office buildings, department stores, airports, and gasoline stations i.e.
locations chosen specifically to maximize convenience and consumer accessibility.
It is important to find a location that has a continuous stream of traffic,
convenient parking, and is in proximity to other businesses or densely
populated middle income areas / apartment buildings, where the target market is
available. Here are some factors to consider when deciding on a location to
establish a fast food outlet:
•
Anticipated sales volume. Estimate the sales potential of a location.
•
Accessibility and visibility. Consider how easy it will be for customers to get
to the outlet. If an entrepreneur is relying on strong pedestrian traffic, it should
be considered whether or not nearby businesses will generate foot traffic.
•
The rent-paying capacity of the business. Sales-and-profit projections give a
fair idea of how much revenue can be generated. This information can be used to
decide how much rent can be paid.
•
Restrictive ordinances. Unusually restrictive ordinances can be encountered
that make an otherwise strong site less than ideal.
•
Traffic density. Two factors are especially important in this analysis: total
pedestrian traffic during business hours and the percentage of it that is
likely to patronize the food service business.
•
Customer parking facilities. The site should provide convenient and adequate
parking and easy access for customers.
•
Proximity to other businesses. Neighboring businesses may influence the fast
food’s sales volume, and their presence can have both positive and negative
implications.
•
History of the site. The recent history of each site under consideration should
be ascertained before making a final selection.
•
Terms of the lease. All the details of the lease must be carefully read, as it
is possible to encounter unacceptable lease terms for an otherwise excellent
site. • Future development. The local Development Authority / Planning Board
should be consulted to check if any development is planned for the future that
could affect the business, such as bridges, underpasses or any construction
restricting accessibility.
POTENTIAL
TARGET MARKETS / CUTOMERS
The
fast food restaurant market is a growing segment in Pakistan relying heavily on
the changing lifestyle patterns, population growth of the target age group and
increase in employment of women. The fast food consumption has also increased
due to increase in the employment rate of male / female population aged between
20 to 45 years (fast food goers). In today's hectic urban lifestyles, demand
for convenience dominates all other preferences. People want quick and
convenient meals. They do not want to spend a lot of time preparing meals,
traveling to pick up meals, or waiting for meals in restaurants. As a result,
consumers rely on fast food. However, the major chunk of fast-food goers, the
middle income segment, prefers visiting outlets that offer fast food at
affordable prices. Fast Food outlets tend to focus on the “work while you eat”
or “shop while you eat” philosophy and fast food restaurants are rapidly
becoming the eateries "everyone can agree on", with many featuring
menu combos for children, play areas and fancy branding campaigns, designed to
appeal to younger customers.
0 Comments